Tips To Control Holiday Spending

Christmas time comes once a year. It makes many people happy with all the gift giving and merry making. Some of the happiest people during the holidays are retailers because of all the shopping that usually begins after Thanksgiving and ends after Christmas. For many people, the holidays are spent spending money for gifts, vacations, and parties. Spending your money is alright, especially if you have it to spend. The problem is when you spend money you don’t have. This is overspending, and we have tips below to help you keep track of your money this holiday season.

How Much Can You Spend?

To keep yourself from overspending, figure out how much you can spend on gifts, decorations, entertainment, and travel. Once you find out how much you can afford without sacrificing the necessities, it will be easier to shop for gifts, decorations, host parties, or travel during the holidays. You can think of this as your budget. Since you know the budget, it is now time to exercise discipline and stick to the amount.

Find Ways To Save

Bargains, sales, and discounts are amazing during the holiday season. Buying discounted items is actually a great way to save during the holidays. You can start early by making a shopping list of all the people you need to buy gifts for. Once sales like Black Friday occurs, you can then browse for gifts online or head down to the shops to find gifts on discounted prices, buy-one-take one or those with freebies which you can also gift to other people.

Resist Temptation

You want to be generous now, but remember you have to pay for it (literally) later so resist all temptation to overspend. If you allotted a certain amount for a person, stick to that budget. If the other sweater looked more gorgeous, perhaps you can find a similar one that is on sale. Find alternatives for gifts and stay within range of your budget rather than overspend.

Use Cash

Spending using your credit card can make you uncontrollable, and most of the time, you end up spending more money than originally intended. The problem with credit cards is that you can pay it at a later date and rack up interest. Being in debt due to overspending can take a long time to reverse. To avoid this, always use cash to purchase your gifts, decorations, entertainment, or travel essentials for the holiday. This way, you can control spending, and if you don’t have cash, you can’t spend.

Give Yourself Incentives

Give yourself incentive to stick to the plan. Reward yourself by indulging a little. For example, at the end of Christmas, total everything. If you did not overspend, treat yourself to something you really wanted, like that handbag or that cashmere sweater. You can also reward yourself with a massage or a trip to the spa. Just remember not to overspend on your treat too.

Be Flexible

If you find that you’ve overspent, don’t beat yourself up too hard. Instead of dwelling on your guilt, find ways to come up with money so that your credit card or wallet won’t suffer too much. Spending on credit is easy but paying it will not be. You can either come up with ways to cut overhead a little bit or find an extra job to offset the charges.

Things To Expect When Investing In A Startup

Making the first move is tough, but it gives you the confidence to lead a crowd behind you and take them along the right path.

Investing in startups is an exciting and challenging process. The investor must choose his area of interest before financing, since it’s vital to understand the business mode,l and you can also help the startup with your strategic inputs. Depending on your investment profile, you can choose the following options to fund a startup business.

You can create a profile on global platforms like AngelList and CrunchBase to look out for interesting startups.

There are also different deal making platforms like LetsVenture and Venturefund.com that will help you to get connected with the startup community.

Crowdfunding is another choice if you want to invest smaller amounts along with another group of investors with common interests and risk appetite.

You can also try to establish contact with accelerators to find better startups to invest in.

The startup ecosystem is highly volatile, so before you decide to invest in a startup business, you need to consider many things like the liability, accurate valuation of the firm, your timeline, and your exit strategy. Most of the small-business investment opportunities come from friends, family, or word of mouth. So, before you get into financing a new venture, measure your steps carefully. It’s vital to understand the business model and the revenue generation model.

Understand the structure of the business

There is always a chance that a startup business may fail. So, you need to understand the structure of the business and the risks involved in detail. Many startup businesses shut down within the first five years of operation mainly due to a flawed business model. Hence, if you do not understand the structure of the business, the chances of failure is high. It is important for the investor to limit their liability in the business. So, before investment, drafting the scope of the partnership and the associated liabilities is crucial for an investor.

You may not see profits in years

If you want to invest in startups, make sure that you are not in a hurry. Putting a large sum in a business can be a risky affair, and there are chances that you may not see any returns in years. Set milestones accordingly and understand the potential of the business to break even.

Plan an exit strategy

Investment in a new business venture means taking a risk. There are chances that the venture may fail and your investment is lost. It is good to wait for five years before you can expect some return on your investment. However, this varies depending on the nature of the business and if you need some liquidity before that period, you should plan a proper exit strategy. These clauses should be clarified upfront before investing and should be agreed upon by both parties with a legal stamp.

Homework

There is rarely any match between your expectation from the business and the real scenario. So, before you invest a lump sum amount in a startup, you need to do a SWOT (strengths, weaknesses, opportunities, and threats) analysis of the project. The startup should also have a proper business and marketing plan. Stay involved and review the performance of the startup periodically. You may consult a business valuation expert to take the correct decision.

Scams To Avoid During The Holidays

The Holidays is a special time and makes us more aware of our blessings and the needs of other people. It is during this time of the year that many people choose to give a part of that blessing to people who are needy. Unfortunately for us, it is also the time for unscrupulous people to come out of the woodwork to take advantage of this generous spirit. Giving during the Holidays is good and it is encouraged. However, it is also better to be vigilant to ensure that the right people benefit from the generosity. Here are some charity scams to avoid during the holidays.

Fake Charities

During the Holidays, giving is at its peak. It is no wonder then that charities sprout like mushrooms during this time of year. While there are many legitimate charities, be wary of fake charities that aim to take advantage of people’s generosity. If you want to give to charitable institutions, give to those who make a public record of donations. The Salvation Army or Toys for Tots are good examples. In order to weed out fake charities, limit your donations to charities that provide financial statements. Check your local business bureau or the chamber of commerce for documentation.

Unfamiliar Websites

Just like fake charities, websites should be taken with caution during the Holiday Season. The FBI cautions shoppers not to shop on websites that look dubious, do not have SSL certificates, or have third party payment systems. Most of these sites are easy to spot since most of them offer products at unbelievable discounts. If it sounds too good to be true, it’s probably a scam. The authorities also warn against wiring money as payment, because once money is wired, it cannot be recovered again.

Be wary of emails from e-commerce sites too. Some of them contain links that lead you to purchase products at big discounts. The problem occurs when you pay and they ask for your credit card information. These sites are setup to fish for information so that the scammers can use your financial information later on.

Social Media Mash Ups

Social media is a popular way to connect, which is why it is now a popular way to dupe people out of their hard earned cash. Social media is now being used by scammers to plant malware in your computer. Users of social media should refrain from accepting friend requests from people they do not know.

Aside from malware and viruses, scammers also use social media to monitor your whereabouts. If you frequently post what you’re doing or post purchases, they can use this information to track you down and possibly rob you. Think Kim Kardashian and France before posting anything sensitive online.

Apps

Did you know that downloading fake apps can lead to scams? When you download an app, it requests permission to access information about you that’s already stored on your mobile device. If you download a fake app, it can use this information such as your credit card details to buy products. To avoid downloading fake apps, use apps of trusted developers and to look for reviews before installing.

The Importance Of Controlling Risk In Your Business

Risk is a part of life! Any enterprise, big or small, can face some unforeseen incidents and incur a significant loss. The risk can result from both inside or outside, natural disasters, accidents, human error and faulty production. Managing or controlling the risks is one of the most important aspects of running a business. If the business is owned by a sole proprietor, he has to face an additional personal risk of liability and financial crisis. The risk management techniques include risk reduction, risk transfer, and risk avoidance.

The risk management process involves proper planning. Here are some guidelines to control risk in your business venture.

The importance of liability trends

One of the most important aspects of risk control is tracking the trends in liability insurance coverage. It can help you to get more coverage options for your business. You should always buy a good liability insurance policy for your enterprise. There is some additional coverage too like inland marine insurance which provides coverage for job site insurance and builder’s risk insurance which is specifically for construction site coverage.

Risk evaluation and consequences

Evaluate all the pros and cons and the risk involved in the business. Avoid doing something that has less benefits, but severe consequences if the action fails. If you want to take up the challenge, do it intelligently, divide your liability with your partners, and try to reduce the risk component.

Importance of quality assurance program

To avoid any unprecedented risks in business, implement a quality assurance program. Review the feedback from the customers. Regular product quality testing can give time for correction and reduce the chances of product failures.

Maintain accurate records

Implement a system that can check the overall performance of the company. Keep a track of how the finances of the business are being utilized. You should regularly compare the economic condition of your business with that of the market. It can help you get an idea of controlling financial risks.

Managing financial risks

Reduce the financial risks by managing the accounts of the business regularly. Minimize outstanding balances and identify the poor credit risks. Implement a credit and payment standard. Also, specify which credit score and payment methods are acceptable. Evaluate customer payments and if the customers do not follow your plans, implement advanced payment options. Keep your outstanding loans, and financial needs to the minimum. Plan business expansion in such a way that you do not have to take a huge debt. Try to finance the growth internally.

Recovery planning

Your business needs proper coverage for thefts, scams and other crimes. Chalk out a disaster recovery plan to save your funds. Get adequate insurance for data security, employees, and equipment.